Meridiam has closed a deal involving the acquisition of 24.1% of shares of the Firenze Tram PPP project from the city of Florence, Italy.

Under the terms of the closed transaction, Meridiam will pay €8.8 million (US$9.5 million) to the city of Florence for the stake in the project. According to sources, the city plans to use the funds from the sale to strengthen its balance sheets.

The project involves a 35-year concession, and entails the design, build, finance operation nad maintenance (DBFOM) of the light rail network Lines 2 and 3, and the operation and maintenance of Line 1 which was funded by the public sector and opened in 2010.

The three interconnected lines serve the cities of Florence and Scandicci. Line 1 connects Florence's mainline railway station to Scandicci. Line 2 will connect the city centre with the airport and Line 3 will connect with the main city hospital Careggi.

When complete the light rail network will be 29.5km with 40 stations and 43 vehicles.

In may 2014, a consortium led by Paris’ transport operator, RATP, reached financial close on the €344 million (US$476 million) refinancing of the project. Primary financing was approved in 2005, however since then the light rail project has undergone a redesign at the request of the grantor, the municipality of Florence.